Open a line of credit with a credit card or purchase a small piece of property?

Jump to Last Post 1-3 of 3 discussions (6 posts)
  1. Msmillar profile image93
    Msmillarposted 3 years ago

    Open a line of credit with a credit card or purchase a small piece of property?

    I want to improve my credit score to buy a home. I've always paid cash, so I have no credit cards or car loans.  The lender recommended I open a line of credit with a credit card company and make small purchases and pay them immediately.  I'd rather purchase a small piece of property here in my town and make payments on the loan to improve my credit.  What would be a better choice, open a line of credit or purchase a small lot and make payment s on a small loan for it? Thank you for any advice!

  2. dburkeaz profile image87
    dburkeazposted 3 years ago

    I think you should be congratulated for not using credit and paying cash.  You don't have to improve your credit score to get a mortgage, do some research and find a mortgage company that will do Manual Underwriting.  Which means you can bring in proof of your ability to pay your bills on time (rent receipts, bank statements, receipts for large purchases, etc.) as a basis for a loan.  Playing with credit cards like your lender is suggesting is like playing with snakes, no matter how careful you are eventually you will get bitten.

    1. Msmillar profile image93
      Msmillarposted 3 years agoin reply to this

      Thank you dburkeaz!  I will do exactly what you suggested, ask for a Manual Underwriting.  I thought there had to be another way, but I didn't know what key words I needed. Thanks again!

    2. dburkeaz profile image87
      dburkeazposted 3 years agoin reply to this

      Good move Msmillar, credit cards and the FICO score are the bane of the middle class.

  3. promisem profile image97
    promisemposted 3 years ago

    Why not do both? Open a few credit cards with low lines of credit, such as $500, and make those payments immediately.

    If by buying a piece of property, you mean to build on that property, then by all means do so.

    A combination of a few conservative credit cards and a small mortgage payment will build up your credit score nicely. Track your score and cancel the credit cards once the score gets high enough.

    Otherwise, I agree with the other post. Go shopping for another lender. Also keep in mind that the ability to pay is based on both income and assets (which reflect the ability to repay the loan in case income goes down), so building your savings also will improve your ability to get a loan.

    1. Msmillar profile image93
      Msmillarposted 3 years agoin reply to this

      Thank you promisem,  I appreciate your help! I'm going to go along with dburkeaz just because I don't want to get involved with credit cards because I DO have a very healthy savings, there's no reason for cards. Thank you!

Closed to reply
 
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)